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Bonds
The smart way to balance portfolio risk
Bonds play an important role in helping businesses balance portfolio risk.
Tax advantages, regular interest payments and capital preservation qualities make bonds attractive for businesses seeking a diversified portfolio.
Extraco offers a wide range of bonds, including:
Corporate bonds
For investors seeking regular income payments, corporate bonds pay fixed interest and offer maturities from one to 40 years. Interest and capital gains are taxable. Corporate bonds can be purchased in multiples of $1,000, with a minimum purchase of $5,000.
Municipal bonds
For income-oriented investors seeking tax-free income, municipal bonds offer a fixed rate of return that is free from federal income tax and, in some cases, state and local tax. The two main types are general obligation bonds and revenue bonds. Municipal bonds can be purchased in multiples of $5,000, with a minimum purchase of $5,000.
Federal Home Loan Mortgage Corporation Pass-Through Certificates (FHLMC)
For safety-conscious, income-oriented investors, FHLMCs are fully taxable government-backed securities that provide variable monthly income over intermediate and long terms. Also called Freddie Macs, these securities support a secondary market in conventional residential mortgages.
Federal National Mortgage Association Pass-Through Certificates (FNMA)
For safety-conscious, income-oriented investors, FNMAs are fully taxable government-backed securities that provide variable monthly income over intermediate and long terms. Also called Fannie Maes, these securities are very similar to FHLMCs.
Government National Mortgage Association Pass-Through Certificates (GNMA)
For safety-conscious, income-oriented investors, GNMAs are government-guaranteed securities subject to federal and state taxes. GNMAs typically offer the highest rates of return of all government-guaranteed investments. Also called Ginnie Maes, these securities are income investments created by pools of FHA and VA mortgages.
Zero coupon bonds
These state and local tax-free bonds are issued directly by the U.S. Treasury and backed by the full faith and credit of the U.S. Government. They compound semiannually at the corresponding yield the investor locks in at the time of purchase. Ideal for investors who want to accumulate a specific amount of money by a given date.
For more information, contact an Extraco Relationship Manager by e-mail, or call 866-EXTRACO toll-free.
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Line of credit
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Improve your cash flow with revolving and non-revolving lines of credit. |
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Business smarts here
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Reduce fees and use idle funds more efficiently with a Commercial Checking account. |
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